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Dec 31, 2020
3 Chip Stocks Generate Bullish Signals with Confidence Level over 85%

3 Chip Stocks Generate Bullish Signals with Confidence Level over 85%

December 30 was a ho-hum day for the market as many investors were on the sidelines during the holiday season. Despite the low trading volume and lack of excitement, there were three different semiconductor companies that saw bullish signals generated by Tickeron’s A.I.dvisor. That is the company’s artificial intelligence tool. The signals all three showed very high confidence levels for a move higher in the next month.

Microchip Technology (MCHP), Texas Instruments (TXN), and Xilinx (XLNX) all saw bullish signals generated on December 30 and the signals showed confidence levels of 88% and 89%.

All three stocks have seen big gains since the March low, but all three have also experienced small downturns in the last few weeks.

Digging deeper in to the companies and their fundamentals, the Tickeron Fundamental Analysis Screener shows a number of positive signs for all three. In fact, all three have four positive indicators. Texas Instruments doesn’t have any negative marks, Xilinx has one, and Microchip has two.

There are two areas where all three companies get positive signals, the Valuation Ratings and the Profit vs. Risk Rating. Texas Instruments gets extremely high marks in both areas and it gets an extremely high mark for its SMR Rating. Xilinx also gets a good score for its SMR Rating while Microchip’s SMR Rating is neutral.

Microchip and Texas Instruments both score well for their Price Growth Rating while Xilinx gets a neutral rating. One indicator that is mixed is the PE Growth Rating. Xilinx gets a positive mark, Texas Instruments gets a neutral score, and Microchip gets a negative reading.

The stocks don’t fare as well in the technical analysis screener, but some of the readings are getting a little old. All three stocks did get bullish signals from the Aroon Indicator within the last 10 days. All three also got bullish signals from the moving average indicator 22 days ago. All three got bearish signals from the Bollinger Bands 17 days ago and 21 days ago, right before the previously mentioned pullbacks.

Texas Instruments received a bullish signal from the Stochastic Indicators eight days ago. Both Microchip and Texas Instruments are oversold at this time based on the stochastic indicators. All three stocks saw their stochastic indicators make bullish crossovers on December 30.

Xilinx is set to be acquired by Advanced Micro Devices (AMD) in an all stock deal, so the price of Xilinx is highly correlated to the price of AMD at this time. It is worth noting that AMD also saw its stochastic indicators make a bullish crossover on December 30.

 

Related Ticker: TXN

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


TXN in downward trend: price dove below 50-day moving average on July 16, 2026

TXN moved below its 50-day moving average on July 16, 2026 date and that indicates a change from an upward trend to a downward trend. In of 52 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

The 10-day moving average for TXN crossed bearishly below the 50-day moving average on July 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where TXN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for TXN entered a downward trend on August 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on August 07, 2026. You may want to consider a long position or call options on TXN as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for TXN just turned positive on August 07, 2026. Looking at past instances where TXN's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TXN advanced for three days, in of 293 cases, the price rose further within the following month. The odds of a continued upward trend are .

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TXN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.514) is normal, around the industry mean (8.614). P/E Ratio (43.477) is within average values for comparable stocks, (166.940). Projected Growth (PEG Ratio) (1.261) is also within normal values, averaging (1.982). Dividend Yield (0.020) settles around the average of (0.014) among similar stocks. P/S Ratio (13.441) is also within normal values, averaging (48.971).

Notable companies

The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), Intel Corp (NASDAQ:INTC), Texas Instruments (NASDAQ:TXN), Marvell Technology (NASDAQ:MRVL), Analog Devices (NASDAQ:ADI), QUALCOMM (NASDAQ:QCOM).

Industry description

The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.

Market Cap

The average market capitalization across the Semiconductors Industry is 191.15B. The market cap for tickers in the group ranges from 13.43K to 5.42T. NVDA holds the highest valuation in this group at 5.42T. The lowest valued company is CYBL at 13.43K.

High and low price notable news

The average weekly price growth across all stocks in the Semiconductors Industry was 6%. For the same Industry, the average monthly price growth was -7%, and the average quarterly price growth was 41%. WOLF experienced the highest price growth at 39%, while LASR experienced the biggest fall at -18%.

Volume

The average weekly volume growth across all stocks in the Semiconductors Industry was -17%. For the same stocks of the Industry, the average monthly volume growth was -16% and the average quarterly volume growth was -62%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 60
P/E Growth Rating: 53
Price Growth Rating: 46
SMR Rating: 75
Profit Risk Rating: 72
Seasonality Score: -26 (-100 ... +100)
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a manufacturer of integrated circuit semiconductors and calculators

Industry Semiconductors

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